Business due diligence is not just a survey: it also needs to know how to analyze and communicate.

Abstract: Business due diligence is an important part of investment decision-making, which requires not only a comprehensive investigation of the target company's internal and external environment and operations, but also a review and evaluation of the key assumptions of its business plan and an analysis of its business prospects and sustainability. Shangpu Consulting is a well-known independent third-party research and investment and financing consulting institution in China. It has rich business due diligence experience and professional consulting team. It can provide customers with customized business due diligence solutions and help customers make effective investment. Value judgment and risk control. This article will introduce the characteristics and advantages of Shangpu Consulting's commercial due diligence service, as well as the application cases in actual projects, and show how Shangpu Consulting can provide professional support and guidance for customers' investment decisions through in-depth analysis and effective communication.

Keywords: Champ Consulting, Business Diligence, Investment Decisions, Value Judgment, Risk Control

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Definition and purpose of commercial due diligence

Commercial due diligence (Commercial Due Diligence,CDD) refers to the investigation of the internal and external environment and situation of the company's business development by a professional management and consulting team from the outside and inside after the investor has reached an initial cooperation intention with the target company, to evaluate and analyze the key factors for the company to reach its development plan, and to study the business prospect and future development trend of the target company.

The purpose of commercial due diligence is to provide value judgment and correction basis for investment decision-making, to help investors understand the real situation and potential risks of the target company, to assess the competitiveness and profitability of the target company, to determine a reasonable investment price and transaction structure, and to develop effective follow-up management and integration strategies.。

Content and methodology of commercial due diligence

The content of commercial due diligence generally includes the following aspects:

Macro-environmental analysis: analyze the development trends and influencing factors of the industry and market in which the target company is located, such as economic, political, legal, social, technological and other changes, as well as the size, growth rate, concentration, barriers, norms and other characteristics of the industry.。

Market analysis: analyze the market positioning and market share of the target company, as well as the needs, preferences, purchase behavior and satisfaction of its target customers, and evaluate the market attractiveness and market potential of the target company.。

Competitive environment analysis: analyze the strengths and weaknesses of the target company's main competitors in terms of strategy, products, prices, channels, marketing, innovation, etc., as well as the target company's competitive strategy and competitive advantages.。

Business process analysis: analyze the operation mode and process of the target company's core business, such as research and development, production, sales, service, etc., and evaluate the operational efficiency and quality control of the target company.。

Enterprise infrastructure analysis: analyze the target company's organizational structure, management team, human resources, financial situation, information technology and other support capabilities, and evaluate the target company's internal management and coordination capabilities.。

Commercial due diligence methods generally include the following:

Desk research: through the collection and collation of public information and internal information of the target company, such as official website, business registration, industry reports, news reports, research reports of listed companies in the same industry, forum reviews, professional databases, etc., to understand the basic situation of the target company and the general situation of the industry in which it is located.。

Management interview: through in-depth face-to-face or telephone interviews with senior management and key department heads of the target company, to understand the details of the target company's strategic planning, business development, market situation, competitive advantages, risks and challenges, etc.。

Customer and Supplier Interviews: Through random or targeted interviews with existing or potential customers and suppliers of the target company, understand the external evaluation of the target company's product quality, service level, price strategy, partnership, reputation, etc.

Competitor interviews: through secret or public interviews with direct or indirect competitors of the target company, we can understand the strategic intention, product characteristics, market dynamics, competitive advantage, competitive strategy and other aspects of the competitor.

Field visits: Through field visits to the target company's production bases, warehouses, offices, sales outlets, etc., to observe the actual situation of the target company's production equipment, inventory, working environment, staff quality, customer feedback, etc.

Features and advantages of the commercial due diligence service of Champ Consulting

Shangpu Consulting is a well-known independent third-party research and investment and financing consulting institution in China. It has rich business due diligence experience and professional consulting team. It can provide customers with customized business due diligence solutions and help customers make effective investment. Value judgment and risk control. The commercial due diligence service of Champ Consulting has the following features and advantages:

Customer-oriented: According to the customer's investment purpose and needs, Shangpu Consulting formulates the appropriate scope and depth of commercial due diligence, and provides customers with tailor-made commercial due diligence programs to ensure the pertinence and effectiveness of commercial due diligence.

Data-driven: Shangpu Consulting collects and analyzes a large amount of first-hand and second-hand data through various channels and methods, and uses advanced data analysis tools and models to provide customers with objective, accurate, timely and continuous data support to ensure the reliability and scientificity of business due diligence.

Industry expert: Champ Consulting has.1000Remaining positionConsultants, distributed in machinery, building materials, electronics, chemicals, medicine, energy, food, logistics, culture, education, finance, Internet and other industries, can provide customers with in-depth, professional and authoritative industry insights and suggestions to ensure the professionalism and foresight of business due diligence.

Communication and cooperation: Shangpu Consulting maintains close communication and cooperation with customers, timely feedback the progress and results of commercial due diligence, actively listens to customers' opinions and suggestions, and adjusts the direction and focus of commercial due diligence according to customers' needs and feedback to ensure the satisfaction and effectiveness of commercial due diligence.

The application case of Champ Consulting's commercial due diligence service.

Champu Consulting has rich project experience and successful cases in the field of commercial due diligence. The following are some typical cases:

Case 1: An international investment fund conducts commercial due diligence on China's leading online education platform

Project background: The investment fund plans to make strategic investments in China's leading online education platform, which mainly providesK12 online courses and online tutoring services have more than 50 million registered users and 2 million paid users, with a market share of 15%.

Project Objective: The investment fund hopes to understand the market positioning and competitive advantages of the platform through commercial due diligence, evaluate its business model and profitability, analyze its future growth potential and risk challenges, and determine reasonable investment valuation and trading conditions.

Project approach: Champ Consulting has provided comprehensive commercial due diligence services for the investment fund, including the following aspects:

Macro-environment analysis: The development history, current situation and trend of China's online education industry are analyzed, as well as the influencing factors of policy, technology, users and competition, and the characteristics of the industry such as scale, growth rate, profit margin, concentration and barriers are evaluated.

Market analysis: The market positioning and market share of the platform are analyzed, as well as the needs, preferences, purchase behavior and satisfaction of its target customers, and the market attractiveness and market potential of the platform are evaluated.

Competitive environment analysis: Analyze the strengths and weaknesses of the platform's main competitors in terms of strategy, products, prices, channels, marketing, innovation, etc., as well as the platform's competitive strategies and competitive advantages.

Business process analysis: the operation mode and process of the core business of the platform, such as curriculum development, teacher recruitment, teaching management, learning evaluation, etc., are analyzed, and the operational efficiency and quality control of the platform are evaluated.

Enterprise infrastructure analysis: analysis of the platform's organizational structure, management team, human resources, financial situation, information technology and other aspects of support capabilities, to assess the platform's internal management and coordination capabilities.

Project Results: Champ Consulting has provided a detailed commercial due diligence report for the investment fund, including conclusions and recommendations in the following areas:

The platform has strong competitiveness and leading position in China's online education industry, its business model and profitability are relatively stable, its future growth potential and risk challenges are more balanced, and its investment value is high.

The reasonable valuation range of the platform is8 billion to 10 billion US dollars, it is recommended that the investment fund invest with a 10% to 15% equity ratio to obtain a higher investment return and control.

该投资基金在投资后应与该平台保持良好的合作关系，为其提供战略指导、资源支持、市场拓展等方面的帮助，以促进其持续发展和价值提升。

案例二：某国内知名制药企业对一家生物技术公司进行商业尽调

项目背景：该制药企业计划对一家生物技术公司进行并购，该生物技术公司主要从事新型抗体药物的研发和生产，拥有多个在临床试验阶段的创新药物，市场前景广阔。

项目目标：该制药企业希望通过商业尽调，了解该生物技术公司的研发能力和产品质量，评估其技术优势和市场潜力，分析其未来的收入和成本预测，确定合理的并购价格和交易结构。

项目方法：尚普咨询为该制药企业提供了全面的商业尽调服务，包括以下几个方面：

宏观环境分析：分析了全球和中国的抗体药物行业的发展历史、现状和趋势，以及政策、技术、用户、竞争等方面的影响因素，评估了行业的规模、增长率、利润率、集中度、壁垒等特征。

市场分析：分析了该生物技术公司的市场定位和市场份额，以及其目标客户的需求、偏好、购买行为和满意度，评估了该生物技术公司的市场吸引力和市场潜力。

竞争环境分析：分析了该生物技术公司的主要竞争对手的战略、产品、价格、渠道、营销、创新等方面的优势和劣势，以及该生物技术公司的竞争策略和竞争优势。

业务流程分析：分析了该生物技术公司的核心业务的运作模式和流程，如研发、生产、销售、服务等，评估了该生物技术公司的运营效率和质量控制。

企业基础设施分析：分析了该生物技术公司的组织结构、管理团队、人力资源、财务状况、信息技术等方面的支持能力，评估了该生物技术公司的内部管理和协调能力。

项目结果：尚普咨询为该制药企业提供了一份详尽的商业尽调报告，包括以下几个方面的结论和建议：

该生物技术公司在全球和中国的抗体药物行业具有较强的研发能力和产品质量，其技术优势和市场潜力较高，其未来的收入和成本预测较为合理，其并购价值较高。

该生物技术公司的合理估值范围为15亿至20亿美元，建议该制药企业以全额现金或现金加股权的方式进行并购，以获得较高的收益和控制权。

该制药企业在并购后应与该生物技术公司保持良好的合作关系，为其提供资金支持、技术指导、市场拓展等方面的帮助，以促进其创新药物的研发和上市。

案例三：某国内知名电商平台对一家跨境电商平台进行商业尽调

项目背景：该电商平台计划对一家跨境电商平台进行战略合作，该跨境电商平台主要从事海外商品的采购和销售，拥有超过1000万的注册用户和5000万的年销售额，市场占有率达到10%。

项目目标：该电商平台希望通过商业尽调，了解该跨境电商平台的供应链能力和产品质量，评估其运营模式和盈利能力，分析其未来的增长潜力和风险挑战，确定合理的合作模式和合作条件。

项目方法：尚普咨询为该电商平台提供了全面的商业尽调服务，包括以下几个方面：

宏观环境分析：分析了全球和中国的跨境电商行业的发展历史、现状和趋势，以及政策、技术、用户、竞争等方面的影响因素，评估了行业的规模、增长率、利润率、集中度、壁垒等特征。

市场分析：分析了该跨境电商平台的市场定位和市场份额，以及其目标客户的需求、偏好、购买行为和满意度，评估了该跨境电商平台的市场吸引力和市场潜力。

竞争环境分析：分析了该跨境电商平台的主要竞争对手的战略、产品、价格、渠道、营销、创新等方面的优势和劣势，以及该跨境电商平台的竞争策略和竞争优势。

业务流程分析：分析了该跨境电商平台的核心业务的运作模式和流程，如采购、仓储、物流、售后等，评估了该跨境电商平台的供应链效率和产品质量。

企业基础设施分析：分析了该跨境电商平台的组织结构、管理团队、人力资源、财务状况、信息技术等方面的支持能力，评估了该跨境电商平台的内部管理和协调能力。

项目结果：尚普咨询为该电商平台提供了一份详尽的商业尽调报告，包括以下几个方面的结论和建议：

该跨境电商平台在全球和中国的跨境电商行业具有较强的供应链能力和产品质量，其运营模式和盈利能力较为稳健，其未来的增长潜力和风险挑战较为平衡，其合作价值较高。

该跨境电商平台的合理估值范围为5亿至7亿美元，建议该电商平台以股权投资或联合运营的方式进行合作，以获得较高的收益和影响力。

该电商平台在合作后应与该跨境电商平台保持良好的合作关系，为其提供品牌支持、流量引导、技术升级等方面的帮助，以促进其用户增长和市场拓展。